Investment approach

We invest in high growth enterprises at different stages in Central and Eastern Europe. We apply a dynamic but very controlled decision making process in order to benefit from the identified opportunities.

We focus on:

Geography – European Union in the broad sense, with particular attention to growing economies in Eastern and Central Europe.

Industry – manufacturing of tangible, physical products; services industries on pre-selection basis. We particularly look into business-to-business industry, and into suppliers of components for other businesses. We will pay very limited attention to industries with substantial government regulation.

Size and stake – we look for businesses that generate at least €4-10 million of revenue. Our primary interest is acquisition of 100% of fully diluted equity, with potential for minority stake left for management and/or current shareholders. As an option we will consider investments that enable us to control key business decisions (usually more than 25% of share capital).

Business situation – we look to buy into cash flow positive businesses; our interest in start-up or distressed situations is very limited.

Current ownership – private, family owned businesses that may benefit from external management as well as capital.

Investment horizon – the investment term will typically be 3-8 years. Exit options will include sales to other stockholders, management, strategic or financial investors or through public equity offering (IPO) or combination of these forms.